Reopening stores doesn’t meant everything is back to normal, however. Seating, if allowed at all, will remain limited in some markets, with social-distancing guidelines closely followed. Contactless pickup, drive-through or delivery through Uber Eats, available at Starbucks that are currently open, can be expected to be the new norm for other locations as well.
The number will likely only go up. For instance, at some of Starbucks’ stores in New York, signs are pasted on the windows giving consumers a step-by-step instruction on how to download, order and pay through its mobile app. Baristas at locations that are open can be seen stationed by the doors, handing out orders or assisting those who need help with the mobile apps.
In the quarter that ended March 29, worldwide comparable store sales declined 10%, hurt by a 13% decrease in the number of transactions, even as group ordering drove up the average receipt tally by 4%. In the U.S., same-store sales fell 3%, with the decline expected to steepen this quarter as New York and other states began to implement stay-at-home ordersIn China, where the pandemic originated, comparable store sales slumped 50% last quarter.
“We are confident the brand is well positioned,” Starbucks CEO Kevin Johnson said on a conference call late Tuesday. “These impacts are temporary.” With the Commerce Department recently reporting March U.S. foodservice and drinking place sales slumping 27%, Starbucks reopening most of its company-run stores may give it an edge over others that had traditionally counted on most of their sales through sit-in customers. Even before the outbreak spreads in the U.S., four-fifths of its domestic transactions, according to executives on the call, were already for grab-and-go takeout orders.